US cable operator Comcast yesterday launched a surprise bid to buy Walt Disney for about $50 billion in stock, a deal that would create the world's largest media company.
Comcast chief executive Brian Roberts said he made the unsolicited all-share offer public after Disney CEO Michael Eisner personally turned it down on Monday. Eisner was already under fire from Disney family shareholders bent on ousting him.
The proposed deal could redraw the US media landscape, inviting comparisons with the merger of America Online and Time Warner that closed in 2001, which was initially much heralded but failed to meet expectations.
The Disney board met on Wednesday and asked bank advisers to analyse the offer, which would join the top US cable operator with Hollywood's top film studio, broadcaster ABC, sports channel ESPN, worldwide theme parks and a stable of animated characters from Mickey Mouse to the Lion King.
Disney shares rose by as much as 16%, while Comcast shares fell as much as 9%, as investors bet that the Comcast offer would be raised or topped by a rival.
